site.btaBulgarian MEP: EU Is Tightening Control Over Money Laundering Through AMLA

The EU is tightening control over money laundering and terrorist financing, GERB/EPP MEP Emil Radev said on Monday in Varna. He delivered a public lecture at the University of Economics in the seaside city and focused on the new EU policies in the fight against money laundering.

Radev emphasized that according to Europol, about 1% of the EU's GDP is associated with money laundering, which means EUR 130 billion per year. This has led to the adoption of a package in the common European legislation and the structuring of AMLA (Authority for Anti-Money Laundering and Countering the Financing of Terrorism), the new European body that will coordinate the fight against money laundering and terrorist financing.

AMLA will unite staff from all financial intelligence units from EU member states, while the General Assembly of the agency will have representatives of all member states, Radev noted, adding that it will coordinate policies and will have the right to directly supervise the largest financial institutions in the EU. "The reason for seeking this partnership and coordination is that both money laundering and other financial crimes are multinational," the MEP pointed out.

"Over the years, many cases of money laundering have been revealed in the banking sector," Radev recalled, noting that the new European body will be able to take on direct supervision of these financial institutions and thus minimize the danger. Radev also stated that the sanctions for violators have been drastically increased and now reach a percentage of the banks' turnover. In addition to money laundering, AMLA will also be able to monitor violations of sanction regimes, for example under the EU sanctions package against Russia, he said, adding that control will also be tightened over financial flows from third countries, including Central Asia and China.

The MEP also commented that the EU has a very good package for limiting anonymity in offshore companies, noting that the individual registers are already connected. Other countries outside the EU have also taken very serious measures on these issues, in addition, more and more offshore zones are adopting legislation that will lead to clarification of the ownership of companies and cash flows, he emphasized.